GM plans massive sell-off
* GM reveal plans to re-float * Share sell-off could raise 13bn * Reduce Government stake in company...
The US Government will start to reduce its stake in General Motors (GM) this autumn after the car maker announced plans to re-float its stock.
The Initial Public Offering (IPO) is expected to raise between 7.7 and 12.8 billion.
GM was forced into bankruptcy protection in 2009, following a sharp decline in sales of its vehicles. With the help of state-funded aid, GM emerged from bankruptcy protection in the summer of 2009 with the US Government owning a 62% stake in the company.
GM says the amount of shares and the unit price have yet to be determined. 'The amount of securities offered will be determined by market conditions and other factors at the time of the offering', GM said in a statement.
News of the sell-off comes a week after GM's chief executive, Edward Whitacre, announced his plans to resign.